Shares in Avingtrans (AVG) rose 5 per cent following the release of positive half-year results which confirmed that the niche engineering group's transformational switch into the aerospace business is starting to pay dividends.
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Avingtrans declared a half-year dividend of 0.7p and promised a higher payout at the end of the current financial year, too. And while the group isn't a high-yield story just yet, its growth prospects are bright with the long-term order book growing to more than £125m, including new orders from major customers Rolls-Royce and Safran Aircelle.
Broker finnCap forecasts adjusted EPS of 4.8p for 2013, rising to 10p for 2014 (from 3.8p in 2012). Of note, finnCap has stripped out effects from the £12.4m sale of Jena Tec.
